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Thursday, March 30, 2023

Co-owners of Russian lender in fraud case to meet central bank: sources

Co-owners of Russian lender in fraud case to meet central bank: sources© Reuters. Co-owners of Russian lender in fraud case to meet central bank: sources

MOSCOW (Reuters) – Russia’s central bank is on Wednesday meeting minority shareholders in Vostochny Bank, whose majority shareholder, a U.S. investor, was detained last week on fraud charges, a banking source and a senior Russian official told Reuters.

Vostochny Bank declined to comment when contacted by Reuters, and the central bank said it would not comment, citing its policy of not discussing the activities of banks that are going concerns.

Vostochny, Russia’s 35th biggest lender by assets, is majority owned by Baring Vostok Capital Partners, a major equity capital fund.

The fund’s founder, U.S. citizen Michael Calvey, and several other senior executives at the fund, were detained last week on suspicion of defrauding Vostochny bank shareholders. They deny the allegations, and say the case is being used to apply pressure in a business dispute.

Prosecutors said the case was initiated when one of the minority shareholders at Vostochny Bank went to law enforcement officials alleging fraud by Baring Vostok.

The banking source said the central bank would meet the minority shareholders to discuss how to handle financial issues at the lender, especially in light of Calvey’s detention.

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Source: Investing.com

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